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Quitclaim deed

Servicer

Recording fee

Settlement statement

Rate

Refinance

RESPA

Survey

Settlement costs

Short sale

Right of rescission

Securitization

Seller contribution

Return on investment

Servicing

Subprime

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When a seller transfers legal ownership of a property to a buyer, this documents the conclusion of the seller's ownership. It does not specify the interest the seller has in the property; it contains no warranties of the seller's interests or rights — including whether the seller has valid ownership — in the property.

This is the interest charged to borrower by the lender for extending the loan the borrower uses to refinance or purchase property.

This confirms the boundaries and location of a property and the improvements on the property. It is conducted by a professional surveyor. If used for purposes of title insurance, it confirms that the improvements on the property do not encroach on any easements, neighboring property or right of ways that are on record.

This is the process in which financial companies structure investments to sell, buy and trade portfolios of mortgages in the secondary market. Typically, similar mortgages are packaged together into a product called mortgage-backed security, or MBS. Commonly held opinion points to this as one of the major contributors to the financial crisis of 2008.

The Real Estate Settlement Procedures Act is a federal law intended to make clear to borrowers the apparent and hidden fees lenders charge in home loans. Before it came into law in 1974, it was common for mortgage lenders to pay secret kickbacks to real estate agents who steered business to certain lenders, offer bait-and-switch loan rates, and hide fees. The Consumer Financial Protection Bureau (CFPB) enforces this law.

This category of loan is extended to the riskiest category of borrowers. These borrowers, for various reasons, have limited credit history and are less likely to repay loans. Some borrowers choose not to provide income or asset verification. Borrowers of these loans pay higher interest rates than prime borrowers. The Federal Reserve has defined these as loans with interest rates at least three percent higher than the rate for a same-term U.S. Treasury bond.

Counties or other government agencies charge this fee to file and put on record certain documents and instruments as to the ownership interest and liens on a property. Filing the documents make them public record.

This is when a property is sold for less than the outstanding mortgage, and the lender agrees to take a loss on the sale. The lender agrees to do this because it prefers to recover some of the loan balance rather than the alternative, which is a borrower default of the loan and subsequent foreclosure. The borrower is then released from the mortgage.

In this process, a borrower pays off a current loan and replaces it with a new mortgage loan, often with the purpose of obtaining a lower interest rate or different loan term or to cash out equity in the property.

Borrowers have the federally mandated right for three days beginning on the closing date, to cancel certain real estate financing loans — a home equity loan, line of credit and refinance with a new lender — and receive a refund of all costs of the loan.

A homeowner takes money out of his property through this. The real estate is collateral and the homeowner is not required to repay the loan, including principal and interest, until the he dies or sells the home.These are highly regulated and typically are available only to senior citizens.

At closing, this standard form itemizes the actual costs and fees of the mortgage lender, mortgage broker, real estate agent, seller, buyer and other parties to the refinance or real estate property purchase.

Also known as ROI, this is the benefit an investor receives from an investment.

Fees and ancillary expenses involved in the lending process are paid at the closing. They are also known as closing costs. Examples include the origination fee, appraisal fee, title insurance premium, recording fees and points.

This is a refinance whose process is faster and more affordable to borrowers because of the omission of certain steps taken in a traditional process. This type is more common for loans that a lender originated and still owns at the time of refinance. The lender is already familiar with the borrower's financial information, including credit risk and verifications.

Mortgage Lenders or service companies, handle the collection of monthly mortgage payments and the day-to-day handling of the mortgage, including record-keeping of principal and interest payments, management of escrow accounts and interaction with borrowers. This may ot necessarily be the owner of the borrower's mortgage; sometimes the owner of the mortgage hires the services of another company to act as this figure.

A seller pays these agreed-upon costs on behalf of the buyer to expedite the buyer's financing. For example, this could go toward the buyer's buy-down, discount points, title insurance or origination fees. It is also called seller concession.

This is the daily management of the mortgage account. It involves recordkeeping, disbursals out of the escrow account to pay property taxes and homeowners insurance, and other routine tasks. The company that owns the mortgage may not necessarily be the entity doing this.